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- **Revenue Growth**: Q3 2025 revenue of $362.3M (+25% YoY), driven by personal care (76.1% of revenue) and rate increases in Texas (+9.9%) and Illinois (+3.9%).
- **Acquisition Activity**: Acquired Del Cielo Home Care in Texas, adding $12.7M annualized revenue, and Helping Hands in Pennsylvania.
- **Hospice Momentum**: Same-store revenue up 19% YoY, with 25% of admissions in New Mexico and Tennessee sourced from home health.
- **Financial Health**: Adjusted EBITDA of $45.1M (+31.6% YoY), net leverage under 1x, and $51.3M cash flow from operations.
- **Strategic Initiatives**: Caregiver app rollout in Illinois and New Mexico, improving billable hours and volume growth.

**【CEO Summary Section】**
- **Revenue Performance**: Q3 2025 revenue $362.3M (+25% YoY), adjusted EPS $1.56 (+20% YoY), EBITDA $45.1M (+31.6% YoY).
- **Leadership Transition**: Heather Dixon as COO, Brad Bickham retiring in March 2026.
- **Rate Increases**: Texas (+9.9%) and Illinois (+3.9%) add ~$17M annualized revenue each.
- **Acquisition**: Del Cielo Home Care in Texas, $12.7M annualized revenue.
- **Operational Metrics**: 113 hires/day (+6.6% QoQ), 86 starts/day, strong cash flow ($50M Q3).

**【CFO Financial Commentary】**
- **Segment Breakdown**: Personal care 76.1%, hospice 19%, home health 4.9%.
- **Gross Margin**: 32.2% (+0.4% YoY), benefiting from hospice rate update.
- **G&A Efficiency**: 21.9% of revenue, down 0.2% YoY.
- **Liquidity**: $102M cash, $154M debt, net leverage <1x.
- **Tax Rate**: 24.7%, stable in mid-20s for 2025.

**【Q&A Highlights】**
- **Caregiver App**: Illinois billable hours +2.4% YoY, rolling out to New Mexico.
- **Home Health Strategy**: Focused on small, strategic acquisitions in markets with existing services.
- **Medicare Cap**: No liability in Q3, improved mix management.
- **Rate Environment**: Texas and Illinois rate increases offset home health uncertainty.
- **Acquisition Pipeline**: Targeting low-multiple, density-boosting deals in personal care and clinical segments.

Addus HomeCare Corporation (ADUS) Q3 2025 Earnings Call Transcript

- **Revenue Surge**: 21.8% YoY growth to $349.4M, driven by Personal Care (7.4% organic) and acquisitions.
- **State Support**: Illinois and Texas rate hikes add $35.2M annualized revenue, with 20%+ margins.
- **Acquisition Momentum**: $16.7M Helping Hands deal expands Pennsylvania density; Texas now second-largest market.
- **Financial Strength**: $97M cash, <1x leverage, and 24.5% EBITDA growth.
- **Risks**: CMS home health cuts (6.4% proposed) and clinical hiring challenges.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 2025 revenue reached $349.4 million, up 21.8% YoY, driven by Personal Care segment growth (7.4% organic) and acquisitions (e.g., Gentiva, Helping Hands). Adjusted EPS rose 10.4% to $1.49, and adjusted EBITDA increased 24.5% to $43.9 million.
- **State Rate Increases**: Illinois (3.9% effective Jan 2026) and Texas (9.9% effective Sep 2025) will add $17.5 million and $17.7 million in annualized revenue, respectively, with margins ~20%.
- **Acquisitions**: Closed $16.7 million Helping Hands deal in Western Pennsylvania, expanding personal care density and clinical services. Texas now second-largest market for Personal Care.
- **Leverage**: Reduced bank debt to $173 million, maintaining <1x net leverage for flexibility in pursuing accretive acquisitions.

**【CFO Financial Commentary】**
- **Financial Highlights**: Gross margin 32.6% (flat YoY), G&A 22.1% of revenue, and DSOs 37.7 days. Texas rate increase to add $17.7 million in 2025, with Illinois rate increase contributing in 2026.
- **Segment Performance**: Personal Care ($269.2M, 77% of revenue), Hospice ($62.2M, 17.8%), and Home Health ($18M, 5.2%). Hospice same-store revenue up 10% YoY, Home Health down 6% YoY but improving profitability.
- **Cash Flow**: $22.5M net cash flow from operations, $97M cash on hand, and $635.6M revolving credit capacity.

**【Q&A Highlights】**
- **Labor Trends**: Strong hiring in Personal Care (105 hires/day in Q2), but clinical hiring remains challenging. Caregiver app adoption in Illinois (~90%) aims to improve fill rates and retention.
- **Policy Risks**: Concerns over CMS home health payment reduction (6.4% proposed) and potential sequestration cuts. Advocating for fair reimbursement to maintain home health access.
- **State Reimbursement**: Monitoring New Mexico and Pennsylvania for potential rate increases in 2026. Pennsylvania acquisition aligns with potential future rate support.
- **Acquisition Strategy**: Focused on small, accretive deals in existing states, avoiding high-risk clinical acquisitions amid federal payment uncertainty.

Addus HomeCare Corporation (ADUS) Q2 2025 Earnings Call Transcript

- **Record Q1 Growth**: 20.3% revenue rise driven by Personal Care (7.4% same-store growth) and Gentiva PCS acquisition.
- **Profitability Expansion**: Adjusted EBITDA margin 12% vs. 11.6% YoY, with stable gross margin and disciplined expense control.
- **Strategic Acquisitions**: $280M annualized Gentiva revenue added; $20M debt reduction maintains conservative leverage.
- **Hospice Momentum**: 9.9% same-store growth, 4.6% census increase, and CMS rate hike supporting 5-7% annual target.
- **Texas Expansion**: Evaluating clinical and non-clinical deals to expand Personal Care density and complementary services.
- **Minimal Policy Risk**: Medicaid changes favor low-cost home care providers; no direct impact from ACA rollbacks.

**【CEO Summary Section】**
- Q1 2025 total revenue: $337.7 million (20.3% YoY growth), driven by Personal Care segment (7.4% same-store revenue growth) and the first full quarter of Gentiva PCS operations.
- Adjusted EPS: $1.42 (17.4% YoY increase); Adjusted EBITDA: $40.6 million (25.1% YoY growth).
- Personal Care highlights: 2% YoY same-store hour growth, 79 hires/day (up 3 YoY), and Illinois rate increase to $29.63/hour.
- Hospice performance: 9.9% YoY same-store revenue growth, 4.6% increase in average daily census, and 25-day median length of stay.
- Strategic acquisitions: $20 million debt reduction, $97 million cash on hand, and focus on accretive clinical and non-clinical opportunities in Texas.

**【CFO Financial Commentary】**
- Gross margin: 31.9% (stable vs. prior year, impacted by merit increases and Gentiva mix shift).
- G&A expense: 21.7% of revenue (down 0.1% YoY); Adjusted G&A: 19.9% (flat YoY).
- DSOs: 36.9 days (34.9 days excluding Gentiva); Illinois DSOs: 47.6 days (timing-related).
- ARPU utilization: $2.5 million in Q1, $8.8 million remaining for caregiver support.
- Full-year outlook: EBITDA margin >12%, tax rate mid-20%, and disciplined capital allocation.

**【Q&A Key Highlights】**
- **Hospice Capital Limits**: Minimal impact due to balanced referral mix and new sales leadership; cap utilization <1%.
- **Medicaid Policy Risks**: No direct impact from ACA expansion rollbacks; focus on low-cost, high-value care for elderly/disabled.
- **Gentiva Integration**: Stronger-than-expected financial performance; same-store hour growth aligns with state recovery trends.
- **Home Health Challenges**: Small market share (5.3%), but complementary to Personal Care; 1.3% YoY growth and focus on clinical partnerships.
- **Texas Expansion**: Evaluating smaller acquisitions to enhance density and clinical services in Personal Care markets.
- **Technology Impact**: Caregiver app adoption in Illinois improved scheduling efficiency; rolling out to New Mexico with Spanish support.
- **Hospice Growth Drivers**: 5-7% YoY revenue target, ADC growth, and 2025 CMS rate increase supporting margins.

Addus HomeCare (ADUS)-6 May 25-2025 Q1 Earnings call transcript

- **Topline Growth**: Q4 2024 revenue up 7.5% YoY to $297.1M, driven by 5.8% same-store personal care growth and Gentiva acquisition
- **Margin Expansion**: Adjusted EBITDA margin 12.9% (vs. 12.4% YoY), despite 200bps Q1 2025 headwinds from merit increases
- **Strategic Positioning**: Low-cost home care provider benefiting from Medicaid efficiency trends, with 2025 Illinois rate increase adding $23M annualized revenue
- **Balance Sheet Strength**: <1x net leverage, $98.9M cash, and $577M revolver capacity supporting M&A pipeline
- **Growth Catalysts**: 
  - Texas expansion (5% market share, 20%+ state growth)
  - ARPA funding ($11M remaining) supporting caregiver recruitment
  - 10%+ 2025 revenue target via acquisitions and organic growth

**【CEO Summary Section】**
- **Revenue Growth**: Q4 2024 revenue of $297.1M (+7.5% YoY), driven by personal care segment expansion and the Gentiva acquisition. Full-year 2024 revenue reached $1.2B (+9.1% YoY). 
- **Acquisition Impact**: Gentiva PCS added $280M annualized revenue, with 1 month of operations in Q4. Illinois rate increase (+5.5%) will add $23M annualized revenue.
- **Operational Strength**: 
  - Personal care same-store revenue +5.8% YoY, hours served 76/day (up 2/day YoY)
  - Hospice same-store revenue +7.8% YoY, census up 2.7% YoY
  - Home health returns to growth (+1.6% YoY)
- **Policy Outlook**: Medicaid changes could reduce federal FMAP payments, but company's low-cost home care model positions it as a beneficiary of cost-saving initiatives.

**【CFO Financial Commentary】**
- **Profitability**: 
  - Adjusted EBITDA $37.8M (+10.3% YoY), margin 12.9%
  - Adjusted EPS $1.38 (+4.6% YoY)
- **Gross Margin**: 33.4% (flat YoY), expected 200bps decline Q1 2025 due to merit increases and Gentiva mix
- **Cost Control**: 
  - G&A 20.5% of revenue (down 0.1pts YoY)
  - ARPA funding utilization ($2.7M Q4) supporting caregiver recruitment
- **Liquidity**: 
  - Cash $98.9M, revolver capacity $577.7M
  - Net leverage <1x, with $10M debt reduction post-Gentiva

**【Q&A Key Themes】**
1. **Texas Market Dynamics**: 
  - Lower reimbursement rates ($17/hour vs. $29.63 in IL) offset by state growth and 50%+ preferred worker utilization
  - Targeting 3-5% same-store growth in personal care
2. **Labor Market**: 
  - Personal care hiring strong (76/day), clinical nursing shortages persist
  - Service efficiency improvements (hours served/authorized ratio) driving margin expansion
3. **Policy Risks**: 
  - FMAP reductions could impact CA/WA (2% of revenue), but bipartisan support for home care likely limits cuts
  - Medicaid block grants may increase home care utilization
4. **2025 Outlook**: 
  - Q1 2025 EBITDA expected to benefit from Illinois rate increase and Gentiva scale
  - Full-year targeting 10%+ revenue growth through acquisitions and organic expansion

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